Losing a loved one can be emotionally overwhelming. Sadly, the administrative and financial responsibilities that follow can make the burden even heavier. Where proper legal arrangements are not put in place, families and dependents are left dealing with long delays, unexpected costs, avoidable disputes and in some cases, complete loss of access to funds left behind by the deceased.

Family disputes become more likely, especially where customary rules of inheritance apply or where relatives disagree on who should administer or benefit from the estate of the deceased. In some cases, funds in bank accounts remain unclaimed for several years and may eventually become dormant under the Central Bank of Nigeria (CBN) guidelines.

Putting proper structures in place to ensure equitable distribution of funds and assets in line with your intention whilst still alive can save your loved ones from delays, costs and conflict. It will also prevent your hard-earned money from becoming inaccessible or tied up in legal procedures at the worst possible time.

One sure way of protecting beneficiaries is the existence of a valid Will. A Will gives the beneficiaries the legal right to access the funds of a deceased after death once probate is granted.

A Will is the most powerful estate-planning tool. It clearly states who should inherit what and appoints an executor to manage the estate. Where a will exists, the executor applies for Grant of Probate, after which banks can release funds smoothly. The grant of Probate may take some time but it is faster and far more straightforward than the alternative. It also prevents unnecessary disputes and ensures assets are shared exactly as the deceased intended.

Alternatively, when a person dies intestate (Without a Will), the family or beneficiaries must apply for Letters of Administration from the probate registry of the High Court. This is a long, expensive and often stressful process. Assets are frozen while the family tries to meet legal requirements i.e., provide the necessary documents and navigate court procedures. In the meantime, dependants may struggle financially.

In countries like the United States of America and Canada, Pay-on-Death (POD) instructions are recognized. In this case, banks are bound to honour the POD and the person named in the POD may be granted access to the funds in the accounts. While this system is not currently available in Nigeria, it is something our financial institutions should consider adopting to reduce delays, disputes and financial hardship for grieving families.

Practical ways to protect your loved ones
Some Nigerians mistakenly believe that being named or listed as “next of kin” is enough to ensure easy access to the funds of their loved ones in the event of death but discover, often too late, that such listing does not give the listed person access to the deceased’s funds. A Next of Kin is just a contact person, not a legal beneficiary, and banks cannot release money to such next of kin without proper legal authority.

Here are some practical ways to protect loved ones from the uncertainty and struggle that may occur in the event of death:

• A will is the safest and strongest legal tool for protecting your estate. It is imperative to have a valid will setting out instructions on how the estate must be distributed in the event of death.


• Consider joint accounts in which either signatory may sign an instruction for the release of funds. Subject to the account mandate, the surviving account holder may have immediate access to funds. However, due to disputes that may arise, it is advisable to only operate a joint account with someone completely trustworthy.


• Creating a Living Trust enables the trustee to manage and transfer your assets according to your instructions, often bypassing probate entirely.